National Mission for Enhanced Energy Efficiency (NMEEE)

National Action Plan on Climate Change wanted to tackle the energy aspect, which resulted in the formulation of the National Mission for Enhanced Energy Efficiency. It was introduced with an objective to promote the market for energy efficiency by encouraging innovation.

This topic would be of importance in the IAS Exam for both Prelims and Mains.

What is the NMEEE about?

The basis for the introduction of this mission was The Energy Conservation Act of 2001. As per the mission document that was approved in 2010, it was established that the energy efficiency potential in India was to the tune of Rs 74,000 crores. The mission estimates that upon successful execution of the mission, there would be fuel savings to the tune of 23 million tonnes per year, and the greenhouse gas emissions would reduce to the tune of 98.55 million tonnes per year.

For more details on Government actions to protect the environment, candidates can go through the other missions of NAPCC formulated by the Government.

Schemes under NMEEE

Read about the four schemes one-by-one given below:

  1. Perform Achieve and Trade Scheme (PAT)
  2. Market Transformation for Energy Efficiency (MAT)
  3. Energy Efficiency Financing Platform (EEFP)
  4. Framework for Energy Efficient Economic Development (FEEED)

Perform Achieve and Trade Scheme

This is applicable for large scale energy-intensive industries. It is a market-based mechanism to improve on the cost-effectiveness of energy efficiency and certification of energy savings that could be traded.

Market Transformation for Energy Efficiency

Give more thrust to innovations to produce appliances that are completely affordable and energy-efficient.

Energy Efficiency Financing Platform

Ensuring that there is adequate finance at reasonable rates for energy efficiency project implementation.

Framework for Energy Efficient Economic Development

Developing fiscal instruments to promote energy efficiency.

This initiative is undertaken with the objective of addressing the concerns of investors and banks that are averse to taking risks. This scheme provides innovative fiscal instruments. BEE started 2 different types of funds with the objective of boosting the confidence of investors and banks thereby avoiding the risk of projects getting stalled due to lack of funds. The 2 types of funds are

  1. Partial Risk Guarantee Fund for Energy Efficiency
  2. Venture Capital Fund for Energy Efficiency.

Who are the implementing agencies for NMEEE?

  1. Bureau of Energy Efficiency (BEE)
  2. Energy Efficiency Services Limited (EESL)

Results of NMEEE Implementation

  1. In the 1st cycle of PAT, implemented by BEE, in the period from 2012 to 2015, 400 industries were able to reduce their emissions to the tune of 31 Million Tonnes of Carbon Dioxide.
  2. In the 2nd PAT cycle which is from April 2016 to March 2019, the target for reducing energy consumption is 8.869 Million Tonnes of Oil Equivalent (MTOE) encompassing 11 sectors.
  3. A major success story of the EESL program was the implementation of Unnat Jyoti Affordable LEDs for All (UJALA). This radically transformed India’s access to LED bulbs which has resulted in huge energy savings for the nation and this culminated in the reduction of carbon emissions every year to the tune of 27 million tonnes.

The above details would be of help to candidates preparing for the UPSC 2020 exams from the perspective of the mains examination.

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